GET DAILY SIGNALSMaterials Select Sector SPDR (XLB) hits lower rail of channel
The materials sector has lagged most of the other sectors so far in 2019 and for the past year. The Materials Select Sector SPDR (NYSE: XLB) is up 13.23% so far in 2019, but that places it in seventh place among the 10 select sectors SPDR ETFs. The tech sector has experienced a strong performance so far this year and that is the top performance of the group.
Even though it has lagged so far this year, the XLB could be ready to make up some ground on the other sectors. The fund pulled back a little over the last few weeks, but that brought it down to the lower rail of an upwardly sloping trend channel. That lower rail is just above the 50-day moving average, giving the ETF two layers of support.
The daily stochastic readings for the XLB moved down close to oversold territory and appear to be turning higher now. The last time the indicators were this low was at the end of December when the fund jumped by over 10% within a matter of weeks. The stochastics did make a bullish crossover on April 29.
The Tickeron AI Trend Prediction tool generated a bullish signal for the XLB on April 26 and that signal showed a confidence level of 87%. The signal calls for a gain of at least 4% over the coming month and 85% of previous predictions on the ETF have been successful.
Contributor
Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.
Momentum Indicator for XLB turns positive, indicating new upward trend
XLB saw its Momentum Indicator move above the 0 level on October 13, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 83 similar instances where the indicator turned positive. In 72 of the 83 cases, the stock moved higher in the following days. The odds of a move higher are at 87%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for XLB just turned positive on October 06, 2026. Looking at past instances where XLB's MACD turned positive, the stock continued to rise in 42 of 50 cases over the following month. The odds of a continued upward trend are 84%.
XLB moved above its 50-day moving average on October 20, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for XLB crossed bullishly above the 50-day moving average on October 27, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 16 of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 84%.
Following a +0.93% 3-day Advance, the price is estimated to grow further. Considering data from situations where XLB advanced for three days, in 278 of 333 cases, the price rose further within the following month. The odds of a continued upward trend are 83%.
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 12 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where XLB declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 83%.
XLB broke above its upper Bollinger Band on October 15, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for XLB entered a downward trend on October 12, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
Category NaturalResources
Advertisement